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In the latest trading session, PepsiCo (PEP) closed at $157.03, marking a -0.48% move from the previous day. This change was narrower than the S&P 500's 3.25% loss on the day. Meanwhile, the Dow lost 2.42%, and the Nasdaq, a tech-heavy index, lost 0.49%.
Prior to today's trading, shares of the food and beverage company had lost 3.58% over the past month. This has was narrower than the Consumer Staples sector's loss of 7.55% and the S&P 500's loss of 5.62% in that time.
Wall Street will be looking for positivity from PepsiCo as it approaches its next earnings report date. This is expected to be July 12, 2022. The company is expected to report EPS of $1.72, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.77 billion, up 2.85% from the year-ago period.
PEP's full-year Zacks Consensus Estimates are calling for earnings of $6.64 per share and revenue of $83.27 billion. These results would represent year-over-year changes of +6.07% and +4.77%, respectively.
It is also important to note the recent changes to analyst estimates for PepsiCo. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PepsiCo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PepsiCo is holding a Forward P/E ratio of 23.76. This represents a premium compared to its industry's average Forward P/E of 20.6.
Also, we should mention that PEP has a PEG ratio of 3.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.77 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.